Share

Rand hits R10/$

Cape Town - The rand breached the R10/$-mark for the first time since 2009 on Thursday, extending losses after President Jacob Zuma expressed concern about the impact of mine labour unrest.

"There we have it, ZAR breaches 10.0, a very dramatic move in just a short period from our original Q2 forecast of 9.50," said Nomura emerging markets analyst Peter Attard Montalto.

The rand hit a session trough of R10.0080 to the greenback, the weakest in over four years compared with Wednesday's close of R9.82/$.

Montalto said the rand's recent weakness (a few weeks back) was due to a shift to dollar strength has been driven much more this week by rand idiosyncrasies, real money hedging and also most likely some actually real money outflow as well, very much different from the sell-off in the first quarter.

"We still believe there is more risk events to play out through June but we can probably argue that a larger amount of that will be priced in now.

"We don’t expect any real forex intervention from the Reserve Bank unless the market functioning breaks down – verbal intervention is entirely possible from Sarb and the government though they will have to do better than Zuma’s speech this morning which fell flat with zero new policies or reassurances to the market (which lets remember was the primary target of the speech)," he said.

Montalto said interest rate hikes are still not a near term option unless the rand went parabolic.

 - Fin24


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders